California-headquartered global Cloud data services company NetApp said it has entered into a definitive agreement to acquire Israeli company Spot, formerly Spotinst, with an aim to establish leadership in Application Driven Infrastructure.
While the two companies did not disclose the transaction details, according to a report in Israeli publication CTECH, the deal was worth $450 million.
Spot is a leading player in compute management and cost optimisation on the public Clouds.
NetApp said that in partnership with Spot, it will establish an Application Driven Infrastructure to enable customers to deploy more applications to public Clouds faster with Spot’s “as-a-service” platform.
It will lead to continuous optimisation of both compute and storage for both traditional IT buyers with enterprise applications, Cloud-native workloads and data lakes, the company said.
The transaction is expected to close in the first half of NetApp’s fiscal year.
“In today’s public clouds, speed is the new scale. However, waste in the public Clouds driven by idle resources and overprovisioned resources is a significant and a growing customer problem slowing down more public Cloud adoption,” Anthony Lye, Senior Vice President and General Manager, Public Cloud Services, NetApp, said in a statement.
Together, NetApp and Spot’s Application Driven Infrastructure for continuous optimisation could help customers save up to 90 per cent of their compute and storage Cloud expenses, which typically make up 70 per cent of total Cloud spending, and will help accelerate public cloud adoption.
“Spot was founded with a vision to revolutionize the way companies consume cloud infrastructure services, using analytics and automation to deliver the most reliable, best performing and most cost-efficient infrastructure for every workload on every cloud,” said Amiram Shachar, Founder and CEO, Spot.
“We look forward to joining the NetApp family and building together the future of Application Driven Infrastructure and helping customers to deploy more workloads in the cloud.”